Severance, Back Pay

[MigdaliaD]

1. My company is reorganizing, closing its New York offices, and moving personnel to Miami. I have been offered to go. Looking at the severance offer, it says my last day would be today, but the HR Director told me in our meeting that my last day would be the 29th. What's the deal?
2. I was promoted in January, but - while I got the title - the salary amount never went through. The HR Director acknowledges that there was a mistake but says he can't pay me the amount due beyond April 23rd to January. Is that legal? What are my options?

 

[Michael Wechsler]

Originally posted by MigdaliaD:
1. My company is reorganizing, closing its New York offices, and moving personnel to Miami. I have been offered to go. Looking at the severance offer, it says my last day would be today, but the HR Director told me in our meeting that my last day would be the 29th. What's the deal?

Did you ask her? You should have them correct the severance offer if your HR person made a mistake.

2. I was promoted in January, but - while I got the title - the salary amount never went through. The HR Director acknowledges that there was a mistake but says he can't pay me the amount due beyond April 23rd to January. Is that legal? What are my options?

What does it mean that the salary "didn't go through?" Did you get this raise in writing? Why did you wait until June to find out why the raise wasn't reflected in your paycheck?

In just looking at it, it would seem logical that if you had an agreement where you would work, for example, a a rate of $20 per hour and then you were informed that your new agreement is $25 per hour, it would seem to me that they had an obligation to pay you the $25 per hour rate until they notified you of a change and iterated to you a counteroffer. If there was a mistake I would take the position that a unilateral mistake does not change the terms of a contract that was agreed. (If there was a mutual mistake the outcome would be different.)

 

[MigdaliaD]

Salary Issue

Dear Michael,

Thanks for replying. Yes, I did ask. I've been asking since January, but I was told that the decision to approve the raise would not be made until March. Then, in March I was told that - due to company-wide financial problems - the raise was declined. I was completely surprised when the HR Dir. told me that his paperwork told him I had been paid this amount the whole time. Is there anything I can do now besides decline their offer to relocate with the company and leave?

 

[Michael Wechsler]

Re: Salary Issue

Originally posted by MigdaliaD:
I was told that the decision to approve the raise would not be made until March. Then, in March I was told that - due to company-wide financial problems - the raise was declined. I was completely surprised when the HR Dir. told me that his paperwork told him I had been paid this amount the whole time. Is there anything I can do now besides decline their offer to relocate with the company and leave?

Hmmm... I can't say that this is the absolute answer but it would seem that they did indicate that a raise was requested and that there was a possibility of a raise and that the decision to give you one would be finalized in March. It doesn't seem as though it was stated to you that the raise was effective. I'm not sure what else you want them to do since they are closing the doors of the company and relocating. Do you have an employment contract with them or are you an employee who can be terminated at will?

 

[MigdaliaD]

Salary Issue II

Hi again. I can be terminated at will, and that is what I fully expected before the meeting with the HR Director. That is why I am confused. They say that they want to rectify things, and that the paperwork states all the dates, but then they only want to do 1 month's reconciliation. I just want to make sure that when I leave, I do so knowing that I have been treated fairly and not cheated. However, I know that I will be cheated.

 

[Michael Wechsler]

They may present you with a release which is one thing you may want looked over. It may give you a severance provided you sign away your rights to sue the company for wrongdoing and that the severance is a settlement of all matters. It is not unusual to have negotiations on this matter. Of course, it goes without saying that there may be other items contained in your paperwork that you want to look at closely and perhaps have an attorney review.